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ACCA Applied Knowledge · Business and Technology · Fundamental principles of ethical behaviour

Priya is the financial controller of Zenith Ltd. The managing director, her line manager, tells her to adopt an aggressive revenue recognition policy and hints that her annual bonus and job security depend on agreeing. Which threat is this?

It is an intimidation threat. Priya is being pressured by a senior manager, with her bonus and job linked to compliance, which may deter her from acting with integrity and objectivity. An advocacy threat involves promoting a position, and a self-review threat involves assessing one's own earlier work.

  1. AAdvocacy threat
  2. BIntimidation threatCorrect
  3. CSelf-review threat

Explanation

An intimidation threat arises when an accountant is deterred from acting objectively by actual or perceived pressure, including threats of dismissal or loss of rewards. Advocacy involves promoting a client's or employer's position, and self-review involves re-evaluating one's own earlier judgement.

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